Photovoltaic Market By Type (Organic PV, Inorganic PV), By Component (Cells, Modules, and Optics), By Application (Residential Applications, Non-Residential Applications), By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2023-2032

Report Overview

The Photovoltaic Market is projected to grow from USD 96.2 Billion in 2022 to USD 218.9 Billion by 2032, exhibiting a CAGR of 8.8% during the forecast period.

Photovoltaic (PV) systems are essential for utilizing solar energy to produce electricity in a sustainable and environmentally friendly manner. They clearly support initiatives to cut carbon emissions and move toward renewable energy sources on a global scale.

When compared to traditional systems, its operational efficiency is characterized by much lower costs. Solar panels are in greater demand than ever due to the growing need for electricity on a daily basis, the necessity for alternative energy sources, and the growing worry over climate change. The market is well-positioned for significant development and innovation given this dynamic environment. The need for energy has increased as a result of the growing world population.

Governments everywhere are putting policies into place that prioritize the switch away from fossil fuels, trying to reduce environmental pollution, in order to meet this demand responsibly. The use of sources of renewable energy, especially solar energy, is heavily encouraged by the current regulatory environment, which is fueling the market for photovoltaic systems. Additionally, the need to cut emissions of carbon and the affordability of energy production increase solar cable systems' allure. These elements work together to support the solar industry's predicted strong growth. This dynamic creates both possibilities and demands for the sector's ongoing innovation and growth.

According to a joint study conducted by the US Department of Energy (DOE), the Solar Energy Technologies Office, and the National Renewable Energy Laboratory (NREL), solar energy might potentially supply 40% or more of the country's electrical needs in the future. The decarbonisation efforts in a number of industries, such as buildings, transportation, and industry, could be considerably accelerated by this invention.

Numerous Life Cycle Assessments (LCAs) have been completed and made available over the past 30 years, with a focus on different household and utility-scale solar photovoltaic (PV) systems. NREL is making great progress toward its lofty goals, which include a net-zero economy by 2050, a reduction in emissions of 50% by 2030, and a switch to 100% renewable electricity by 2035.

Driving Factors

Sustainability and Environmental Awareness Objectives

A global trend towards greener energy sources has been sparked by increased awareness of environmental challenges, particularly climate change. Solar energy stands out as a renewable energy source with no emissions of greenhouse gases when in use. Reduced carbon footprints and a desire to add to a more sustainable future are driving forces for both individuals and organizations. Solar energy is essential to reaching the lofty sustainability targets established by governments and international organizations.

Reduced Costs of Solar Panels

The cost of producing photovoltaic panels has significantly decreased as a result of the development of the solar sector. Unit costs have dramatically decreased as a result of economies of scale, which are fuelled by higher production volumes. The efficiency and waste reduction brought about by improvements in manufacturing technology and procedures have also increased cost-effectiveness. Solar energy is becoming more widely available to individuals and businesses of all sizes because to the decline in solar panel purchase costs.

Technological Progress

Significant advancements in photovoltaic technology have resulted from ongoing research and development. Solar panels are more effective, converting more sunshine into power thanks to new materials and cell designs. Additionally, production has been streamlined by improved manufacturing techniques, which has decreased costs and raised affordability.

Governmental Policies and Incentives

Governments all across the world are aware of the crucial role that solar energy plays in establishing low-carbon, sustainable economies. They put in place a number of policies to encourage adoption. Investors in solar energy might gain financially through tax incentives, feed-in tariffs, and rebates. Policies such as Renewable Portfolio Standards (RPS) require that a specific proportion of energy come from sources that are renewable, while net metering permits the sale of excess solar power back to the grid, further promoting investment. Net Zero Solutions revolutionizes the Photovoltaic Market with sustainable, energy-efficient technologies for a greener future.

Restraining Factors

Initial Expenditure and Repayment Period

Although establishing photovoltaic systems can require a substantial initial expenditure, the long-term advantages of solar energy are appealing. Some consumers may be put off by this up-front expenditure, although the fact that it results in significant savings over the long run. Location, system size, and regional incentives are a few examples of the variables that might affect the payback period, or the length of time it requires for the energy savings to cover the initial investment.

Challenges with Grid Integration and Storage

The production of solar energy is dependent on sunshine availability, which changes during the day and throughout the year. The smooth integration of solar energy into the grid may be difficult due to this intermittent nature. Effective energy storage technologies are also continuously being developed. Currently, this makes it challenging to entirely rely on solar power during times of low sunlight or at night-time when there is still a need for electricity.

Space and Land Restraints

Huge land resources are needed for substantial solar farms, which are essential for satisfying huge energy demands. This can clash with other land uses like agricultural or conservation initiatives. It can be challenging to strike a balance between the generation of solar energy and other land-use concerns. Given the limited accessible area and competing needs for land use, finding a good location for solar panels can be difficult in densely populated urban areas. For effective solar integration, this spatial restriction may call for creative solutions.

Growth Opportunities

Raising Investments in Research and Development

Increased R&D spending promotes advancements in photovoltaic technology. This includes advancements in the durability, longevity, and production methods of solar cells. It is anticipated that panel design will advance and that there will be developments in materials research, such as perovskite cells. Additionally, R&D promotes the creation of more effective inverters, grid integration technologies, and next-generation storage options.

Transportation Electrification

The shift to electric vehicles (EVs) results in synergies with solar energy, as explained. Photovoltaic systems are being used to power photovoltaic carports and charging stations. Through this integration, the clean energy produced by solar panels is maximized while reducing the carbon impact of transportation. The need for solar-powered infrastructure for charging grows along with the EV market.

New Methods of Financing

The democratization of solar energy access is achieved by innovative finance structures like power purchase agreements (PPAs), solar renting, and community solar initiatives. They reduce the up-front expenses for both customers and companies. Additionally, solar subscription models and energy-as-a-service are taking off, opening up new revenue opportunities for suppliers. In order to create and scale these models, partnerships between solar companies, financial institutions, and technological companies are essential.

Cost Competitiveness and Grid Parity

Achieving grid parity—where the cost of solar energy is equal to or lower than that of conventional energy sources—presents a substantial growth opportunity. This is made possible by ongoing cost reductions in solar panel manufacture, installation, and maintenance. More households and companies will find solar energy profitable as the levelized price of electricity (LCOE) declines, fueling industry expansion.

Type Analysis

The Organic Photovoltaic (OPV) industry had the most revenue in the photovoltaic market. OPVs are a cutting-edge photovoltaic technology that uses organic materials to transform solar energy into electrical energy. The market is expected to expand as a result of anticipated improvements in OPV technology, which will also increase their effectiveness and capabilities. A favourable commercial environment for OPVs has also been created by the growing demand for flexible and lightweight photovoltaic systems, where they surpass their inorganic equivalents in these areas.

Component Analysis

The Photovoltaic (PV) Market was led by the cells category. These solar cells, which are also photovoltaic cells, are the basic components of a photovoltaic system. Their purpose is to convert solar energy into electrical power, which they then use to power various commercial, industrial, and domestic uses. Due to its crucial contribution to the overall effectiveness of photovoltaic systems, this cell category commands significance in the PV market. The development of higher-efficiency solar cells and other ongoing advances in photovoltaic cell technology have accelerated the growth of this market and raised the economic value of photovoltaic technology.

Application Analysis

The market is now dominated by the residential application segment. This increase is related to homeowners and owners of residential property embracing solar technology more frequently. Residential photovoltaic systems have a number of benefits, including lower electricity costs, a smaller environmental effect, and greater energy independence. Residential solar systems are now more readily available and affordable for homes thanks to government subsidies and incentives as well as falling costs in photovoltaic technology. The upward trajectory of expansion of the photovoltaic (PV) sector is a result of these dynamics taken as a whole.

Key Market Segments

By Type

• Organic PV
• Inorganic PV

By Component

• Cells
• Modules
• Optics

By Application

• Residential Applications
• Non-Residential Applications

Latest Trends

Adoption of Bifacial Photovoltaic Panels

Photovoltaic panels that are bifacial have shown significant market growth. Bifacial solar panels can produce power from both sides of the sun, unlike conventional solar panels, which only collect sunlight from one. This invention gives greater installation flexibility and improves the efficiency of energy generation. It is especially useful in environments with reflecting surfaces or shifting sun angles. As a result, bifacial panels are increasingly being used in both home and business photovoltaic systems.

Integration of Solar-Tracking Systems

The market for photovoltaics is increasingly integrating solar-tracking systems. These systems dynamically change the direction and angle of the solar panels so that they always face the sun. By doing this, energy capture is maximized and overall system efficiency is considerably increased. Solar-tracking systems are increasingly being used in smaller installations, despite previously being more popular in large-scale utility projects. This development is the result of a deliberate effort to increase energy efficiency and utilize solar technology to its fullest extent.

Synergy of Energy Storage Solutions

A prominent development is the combination of energy storage technologies and solar systems. This integration addresses the unpredictable nature of solar power by allowing the storing of extra energy produced during the hours of maximum sunlight. This trend is being supported by enhanced battery technologies and intelligent energy management systems. The photovoltaic market is observing a shift toward comprehensive solar-plus-storage systems as energy storage becomes more effective and economical. This development fits well with the overarching objective of increasing grid resilience and energy independence.

Regional Analysis

Asia-Pacific region dominates the market for photovoltaic (PV) technology. Numerous suppliers and important players support this significance, driving expansion and enhancing market presence. The rapidly industrializing area and its expanding population are driving up energy demand to unprecedented levels.

The progress of renewable energies, particularly in solar technology, has been aggressively supported by policies and incentives put in place by governments around the region. Additionally, Asia-Pacific is a centre for innovative photovoltaic technology companies, which has seen significant advancements in technological advances that raise the efficacy and affordability of PV systems.

Key Regions and Countries

North America

• US
• Canada

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Russia
• Netherland
• Rest of Europe

Asia Pacific

• China
• Japan
• South Korea
• India
• New Zealand
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Rest of MEA

Key Players Analysis

A well-known Chinese company called Risen Energy Co. Ltd. focuses on producing and distributing photovoltaic (PV) solutions. They provide a wide variety of PV goods, including modules, systems, and related parts. These modules demonstrate their adaptability by serving applications at the utility-scale, commercial, and residential levels.

Shunfeng International Clean Energy Limited, a significant player in the clean energy industry, is focused heavily on the production of photovoltaic power. Their product range is identical to Risen Energy's, and it includes systems, modules, and related components that are designed for different purposes. Both businesses are dedicated to providing high-quality, dependable, and economical PV solutions. They place a high priority on research and development, continuing their pursuit of technological development and product improvement.

Top Key Players in Photovoltaics Market

• Risen Energy Co. Ltd
• Shunfeng International Clean Energy Limited
• Mitsubishi Electric Corporation
• GCL System Integration
• JA Solar Holdings
• Kaneka Corporation
• Sharp Corporation
• Suntech Power Co.
• Trina Solar Limited
• Canadian Solar Inc.
• Jinko Solar Holding Co., Ltd

Recent Developments

• Canadian Solar said in December 2022 that in the first quarter of 2023, its majority-owned subsidiary CSI Solar Co., Ltd. would start mass producing high efficiency N-type TOPCon (Tunnel Oxide Passivated Contact) solar modules.
• In December 2022, ACCIONA Energia and Hanwha Corporation, a South Korean industrial conglomerate, entered into a purchase deal for Cunningham, the largest battery energy storage system (BESS) project of its sort in Texas.
• Leading Chinese solar business Trina Solar started building a sizable industrial park in the Qinghai region of central China on June 22, 2022. Nearly the whole PV production process will be covered by this facility, from the production of high-purity polysilicon and silicon to the creation of monosilicon, wafer fabrication, cell manufacturing, and module assembly. Additionally, the location will feature support manufacturing lines.
• Additionally, JA Solar, a well-known Chinese solar panel producer, supplied its DeepBlue 3.0 module for the rooftops PV system at Beijing Fengtai Railway Station on June 20, 2022. As JA Solar's cutting-edge technology adorns the busiest railway hub in Asia, this installation represents an important turning point.
• Canadian Solar announced in March 2022 that it had begun mass producing new 54-cell format modules with 182 mm cells for rooftop solar systems for residential, commercial, and industrial use.